Is Now A Good Time To Buy A New Car In Malaysia? Stable Prices & EV Trends Explained

If you’ve been holding off on buying a new vehicle due to rumors of impending tax-driven price hikes, here is some welcome news: Car prices in Malaysia are set to remain stable through the end of 2026.

With the government postponing major automotive tax policy changes, combined with a massive surge in new model launches, current market conditions make this one of the safest windows in years to purchase a new vehicle.

Data from the Malaysian Automotive Association (MAA) reveals a booming first half of 2026, with overall vehicle sales rising by 3% to 385,353 units. Here is a breakdown of why prices are safe and how buying trends are shifting across Malaysia.

1. Why Car Prices Are Guaranteed Stable Through 2026 

The biggest concern for many prospective buyers has been the proposed revision to the Open Market Value (OMV/402) excise duty methodology, which could have increased prices for locally assembled (CKD) vehicles.

However, MAA President Mohd Shamsor Mohd Zain confirmed that the Ministry of Finance (MOF) and MITI have officially extended the deferment period to the end of 2026.

"The postponement of the OMV/402... and the new customised incentive has provided greater certainty to manufacturers and distributors, allowing our business operations and sales activities to continue without immediate disruption."

— Mohd Shamsor Mohd Zain, MAA President

Furthermore, the government has committed that when the new calculation method is eventually finalized, it is being designed to have minimal to zero impact on car retail prices. This extra breathing room gives buyers complete cost predictability for the rest of the year.

Read: Another 6 Months Of No Price Hikes! Here’s The Latest On The CKD Tax Revision

2. EV Demand Surges By 106% 

While overall vehicle sales grew at a steady 3%, the electric vehicle (EV) segment experienced monumental growth.

Malaysians purchased 26,192 battery electric vehicles (BEVs) in the first half of 2026, a 106% year-on-year jump from 12,733 units in 1H 2025. 2026 is officially on track to be the first year EVs outsell hybrid vehicles in Malaysia!

3. Market Trends: SUVs Rise While Pickups Take a Hit 

Buying habits among Malaysians are clearly shifting across vehicle categories:

National Dominance: Local favorites Perodua and Proton captured 67% of total vehicle sales in 1H 2026, up from 63% last year. Non-national brands now hold 33% of the market.

Should You Buy Now or Wait? 

If you're asking whether now is a good time to pull the trigger on a new car purchase, the short answer is yes.

• Zero Price Shock Risk: With OMV tax updates pushed back to end-2026, you won't face sudden price hikes on popular CKD models during booking or delivery.
• Aggressive Dealership Offers: With MAA raising its full-year sales target to 800,000 units, car brands are actively competing with attractive packages, trade-in deals, and promos.
• Best Window for EV Buyers: If you’re considering going electric, the market currently offers the widest range of options, localized support, and tax exemptions seen yet.